How network efficiency advances ESG goals

Improving network efficiency

The world generated more than 175 zettabytes of data in 2025, according to an IDC study. The data centers processing all that information consumed more than 400 terawatt hours (TWh) of electricity -- 1.5% of the world's total -- in 2024, according to a report from the International Energy Agency. Energy consumption by data centers is projected to grow to 500 TWh in 2026, the agency said.

Cooling and environmental control account for more than 30% of electricity bills. Storage and networking equipment account for roughly 5% of data center electricity consumption. Power-hungry networking equipment, including routers, switches and access points, add significant totals to the carbon footprint.

Legacy, outdated or underutilized networking equipment contributes to operational waste through frequent upgrades and shorter lifecycles. Hardware and software significantly contribute to greenhouse emissions.

ESG's influence on network operations

Enterprises consider the efficiency and recyclability of networking equipment in setting ESG targets. But that's only one piece of the puzzle. They also evaluate the role innovative technologies can play to help them reach their goals without compromising their existing network operations.

Below are some approaches companies use to meet their network efficiency and ESG targets.

Software-defined networking

SDN separates the network's hardware plane from its control plane; as a result, the network is centrally managed through software rather than manual configuration. SDN improves data center network provisioning, traffic and routing efficiency, flexibility and security. SDN can also be used to identify and manage idle machines, thereby enforcing energy-efficient policies across enterprise networks. Cloud-based SDN can further reduce operational waste and associated costs. 

Network topology selection

Fewer hops and shorter routing paths result in lower energy consumption throughout the operation. Consider a centralized star or tree with SDN to optimize the network. The same applies to high-performance computing within hyperscale data centers. Other topologies, such as torus and dragonfly, tend to consume less power and perform more efficiently under various loads.

Virtualization

Network functions virtualization (NFV) lets companies use software and off-the-shelf servers to replace firewalls, routers, load balancers and other dedicated hardware. SDN-based network virtualization can run multiple virtual networks over the same set of devices, optimizing energy and costs.

NaaS

NaaS allows enterprises to rent networking equipment, software, frequency band allocations, Wi-Fi and other parts of network infrastructure, even as it shifts CapEx costs to OpEx. Companies pay only for what they use, helping them reduce their energy consumption and carbon footprint.

Network strategies for ESG

Some networking strategies, such as intent-based networking and zero-trust network access, are inherently primed for ESG.

• IBN. Uses AI and machine learning to optimize the network and implement policies that align with business goals. The approach -- with its centralized policy-driven control -- meets regulatory compliance and transparency goals even as it helps build trust among employees, leaders and stakeholders. IBN can serve as an energy-conscious tactic that meshes efficiency and governance.
• ZTNA. An enterprise standard in reducing risk exposure of critical data. ZTNA can improve accountability and strengthen governance by enforcing strict policies.

Best practices for aligning networks with ESG goals

The first step for aligning a network with ESG is to invest in energy-efficient hardware and protocols. Reduce the power consumption of Ethernet devices by complying with IEEE 802.3az. Low power idle mode, rapid wake-up and adaptive power usage help optimize the network for sustainability. Deploy dynamic power scaling and adopt adaptive link rate technologies. Cloud-based services, such as SDN, NFV, and NaaS, are integral to energy-efficient networking.

Below are some other considerations for optimizing a network for ESG.

Content-centric networking

Implementing CCN -- even if it's only in a portion of the existing enterprise network -- can help companies optimize bandwidth and reduce redundant traffic.

Edge computing

Edge computing and IoT integration are methods to fulfill network efficiency ESG goals. Low-power devices that operate offline avoid round-trip requests and keep data close to the generation point. Data transfer is fast and less energy-intensive.

Choose green electricity

According to a report from Ericsson, the information and communications technology sector -- which encompasses data centers, networks and IoT devices -- reduced its greenhouse gas emissions by 3.8% from 2020 to 2024, in significant part due to the integration of solar- and wind-based renewable energy in data centers.

Social initiatives

Networking-related innovations enable enterprises to improve social outcomes even as more of the world's population gains access to digital services and essential resources. Big telecoms, network operators, SIM card companies, and various other enterprises target economically challenged or remote and underserved areas.

Strengthening ESG through the network

ESG reporting is critical to success. Gathering and maintaining reliable network data, in the form of audit logs and records, enables tracking of sustainability metrics and regulatory compliance. Enterprises must hold themselves accountable for ESG performance and continuously optimize ESG strategies for the future.

Venus Kohli is an engineer turned technical content writer, having completed a degree in electronics and telecommunication at Mumbai University in 2019. Kohli writes for various tech and media companies on topics related to semiconductors, electronics, networking, programming, quantum physics and more.